If the marginal propensity to save decreases, the value of the multiplier will Options: A . &nbspIncrease B . &nbspDecrease C . &nbspRemain constant D . &nbspDecrease as much as the decrease in MPS

If the marginal propensity to save decreases, the value of the multiplier will

Question

If the marginal propensity to save decreases, the value of the multiplier will

Options:

A . Increase

B . Decrease

C . Remain constant

D . Decrease as much as the decrease in MPS

Answer: Option A
:
A
If the marginal propensity to save decreases, the value of the multiplier will increase.

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Question 1. If investment increases from 400 to 600 and income increases from 3,000 to 4,000, the MPS should be equal to....

Question 2. If autonomous expenditure by the government increases by Rs 5,000, find increase in equilibrium GDP when half of income ....is always spent on the purchase of goods for consumption.

Question 3. Saving can never be negative.....

Question 4. Find MPC when investment multiplier = 1.....

Question 5. If income increases from 3,000 to 4,000, and autonomous investment increases by 200, the MPC should be....

Question 6. Saving can never be negative.....

Question 7. When C = 100 + 0.5Y and Y = 1,000, autonomous consumption will be:....

Question 8. If the value of the multiplier is 4, what will be the effect on the income of an economy if investment increases by Rs 1....of an economy if investment increases by Rs 100 crore?

Question 9. In an economy, the government makes some additional investment. Find its value when MPC = 0.5 and increase in income = R....MPC = 0.5 and increase in income = Rs 1,000.

Question 10. If MPC = 0.9, then value of multiplier will be :....

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